Determined to succeed

Okay, I'll be clear from the start, I am a complete beginner, but I am determined to succeed in this industry. I've come to a stage in my life where I now realise I need to stop 'thinking' and start 'doing'. I also understand that property investment isn't something you can just jump straight into, so I've come here to begin my research journey, and work towards making this goal become a reality.

Ultimately I want to become a full time developer, but in the short term I'm interested in performing cosmetic renovations to flip property for a profit. I live in Melbourne, and have the financial support of a relative.

I'm currently reading "Building Wealth through Investment Property" by Jan Somers. I know this isn't directed towards flipping for a profit, but I'd seen some very good reviews and thought it would help me become familiar with necessary strategies/methods and ultimately get me rolling in the right direction. Are there any books/seminars/videos more specific to my goal that you would recommend?

Is there anybody on this forum who is involved in flipping houses that would offer their guidance/advice in the early stages of my journey? It would be great to have somebody I could contact with questions when they arise.

I'm looking forward to becoming an avid member of this forum, and learning as much as possible, as quickly as possible!

Cheers,

Jack
 
I see you are in Melbourne. You'll find that you make the most money in Melbourne real estate by holding long-term rather than flipping. Several reasons for this:
1. Melbourne market tends to offer more value in buying higher end stuff that has already been renovated. The 'bare bones' unrenovated derelict types tend to go for way more than would be profitable for a reno+flip. In North Melbourne there was a crappy terrace that sold for $927k and the inside was absolute trash. Post-reno you would probably only get about $1.2m for it max and it'd cost more than $200k to fix it up to that standard.
2. By flipping your activities can become 'business income' which means you pay 100% tax on it rather than taking advantage of the capital gains discount and negative gearing to assist with holding costs.

The only exception to what I said above is if you are doing a proper development where the margins are much higher and the in-out scenario is an unavoidable consequence.
 
Is there anybody on this forum who is involved in flipping houses that would offer their guidance/advice in the early stages of my journey?

Hi Jack,

Welcome to the forum. Try doing a google search on site:somersoft.com "flipping"
There's 3,000 entries you can start reading there :)
 
I am determined to succeed in this industry.

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Thanks for all the replies.

I'll start making my way through the 3000+ posts.

Cheers,

Jack

Start with the blogs as many refer to reno projects. Use the key word search. Also the interview section is a great source of information of people methods, successes, failures, and ventures. Make some notes and it will be a good reference.
 
Instead of flipping, why don't you buy one, reno it to add equity, reval and refinance to access added equity and use that to purchase the next reno project.
 
I think your over-thinking things, just take a breather. There is allot of risk in flipping property. Very high entry(deposit, tax) and exit costs(re-agents, tax), not to mention holding costs.

Property is a long term investment.

Maybe the share market is where buying and selling rapidly work better, with low entry and exit costs.

The magic ingredient in property is mostly made up of time. Jan somers outlines the risks of flipping better than me. Re-read over those parts of the book again. You seem to want to skip that part and just get to the getting rich part. Thats not how it works. You might get lucky. The risk is on you.
 
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